Total US fixed income issuance for Q3 2023 saw a 12% drop (from US$1.8tn) against the same quarter in 2022, and down 12.8% against Q2 2023, according to research from the Securities Industry and Financial Markets Association (SIFMA).
Despite the drop in issuance, US fixed income average daily trading volumes (ADV) in Q3 2023 stood at $1.4 billion, an increase of 13.5% year-on-year (YoY) and up 2.5% against Q2 2023.
US Treasuries saw long term issuance drop 16% in Q3 2023 (US$733.2bn) against Q2 2023 (US$873.3bn) and decrease 20.2% YoY (US$733.2bn/US$919bn)
All US Treasury issuance saw a 17% increase in Q3 2023 (US$6.8bn) against Q2 2023, however, and a 39% increase YoY.
Corporate bond issuance in Q3 2023 was US$332.7 billion, an increase of 9.5% YoY, while ADV for the same period stood at US$38.3 billion, an increase of 2.8% YoY.
Municipal bonds issuance saw a 2% drop in Q3 2023 (US$95.3bn) against Q3 2022 (US$97.2bn) and 6.5% drop in ADV across the same period from US$13.3 billion to US$12.4 billion.
SIFMA research shows that the US fixed income markets are the largest in the world, making up 40% – a peak in 2022 – of the US$130 trillion securities outstanding across the globe, or US$52 trillion as of FY 2022. This is 2.3x the next largest market, the EU. The US market share has averaged 38.1% over the last 10 years.
© Markets Media Europe 2023
